Urban Outfitters Inc. reported fiscal 2027 second-quarter revenue of $1.66 billion, a 10% increase year-over-year and $10 million above consensus estimates. Adjusted earnings per share reached $1.72, up 9% from $1.58 in the prior-year period, while net income totaled $149 million.
Gross profit rose 11% to $625.9 million, with gross margin improving by 4 basis points to 37.7%. Operating income increased 11% to $193 million, maintaining an 11.6% operating margin. SG&A expenses grew 10% to $432.9 million, though they remained flat as a percentage of net sales at 26.0%. The adjusted effective tax rate rose to 25% from 22% a year earlier.
The company’s subscription segment, Nuuly, delivered sales of $178.6 million, a 29% increase, with operating margin reaching 10% for the first time. Average active subscribers approached 500,000, up roughly 30% from approximately 375,000 in the prior year. Rental product inventory grew 28% to $294.5 million.
Retail sales totaled $1.39 billion, up 8% year-over-year, with comparable sales increasing 6% and non-comparable retail sales surging 50% to $79.1 million. Wholesale revenue rose 19% to $90.8 million, while gross margin expanded by 255 basis points to 35.1%. Anthropologie reported sales of $634.5 million, up 5%, marking its 22nd consecutive quarter of positive comparable sales. Free People Group sales grew 15% to $478.1 million, driven by a 26% increase in FP Movement activewear to $131.7 million. Urban Outfitters brand sales rose 8% to $360 million.
Urban Outfitters operated 801 stores as of July 31, 2026, after opening 23 new locations and closing six in the first half of fiscal 2027. The company plans 31 additional openings and 12 closures in the second half, targeting approximately 820 stores by fiscal year-end. Total selling square footage reached 4.5 million.
Cash and marketable securities stood at $946 million, with a $350 million asset-backed credit facility remaining undrawn. Net cash provided by operating activities rose 56% to $392 million for the first six months, while capital expenditures totaled $268 million in the period and are projected at $475 million for the full fiscal year. Share repurchases returned $300 million to shareholders via the acquisition of 4.6 million shares, reducing outstanding shares to approximately 85 million.
Urban Outfitters stock rose 9.46% to $82.95 during regular trading, near its 52-week high of $84.35, before declining 3.56% to $80 in after-hours activity.
